Prices of New Homes in UK remain steady

Prices of New Homes in UK remain steady

May's prices suggest a small rise year on year which Smart New Homes is getting quite excited about, however it's clear that prices are better than last year, but they aren't really moving forward at a pace.

The Marketing Director, Steve Lees suggests that it is mortgage lenders holding back new build prices as they are "undervaluing new homes and setting unreasonable lending criteria". He boldy states "mortgage providers are effectively holding homebuyers to ransom".

It's true that mortgage lenders are probably being somewhat overly cautious, especially when it comes to new build. In theory we'd think the banks understood the property market. For some very odd reason, banks were happy to lend on properties which it was clear to professionals were overvalued prior to the credit crunch and now, when new builds are actually very good value for money they are demanding high deposits (up to 40% for new builds).